Last year I looked at the 1995 profit figures for the premiership clubs (these things are always out of date by the time they become public). The conclusion then was that Everton were not making enough of their position as one of the top five clubs. Although things improved slightly in 1996, going from the twelfth most profitable to the ninth, Everton are still underperforming.
Everton had the fifth highest attendances, but only the eighth highest turnover. With this lower turnover Everton are making less profit than other clubs, being ninth in terms of converting turnover to profit. This leaves the mighty blues a poor mid-table in the business league.
Looking at the latest set of accounts (year ending 31 May 1997) our mixed news continues. Everton's profits have increased, more than doubled in fact, from GBP 1,445,560 to GBP 3,162,475.
How? Well direct costs have stayed roughly the same and other income is roughly the same. Turnover has increased, and looking at the make up of turnover we can see that it is "Match receipts and income from related footballing activities" that has grown. Well Alan Sugar helpfully states that nearly GBP2m of increased turnover at Tottenham was down to Sky TV. This increases turnover and has no effect on costs. Bobs your uncle: GBP 2 million straight to the bottom line profit. No actual improvement in the club's performance at all.
All this masks the horrible truth - TURNOVER FROM COMMERCIAL ACTIVITIES WENT DOWN IN 1996
"The pies (£1.50)ran out an hour before kick off.....The editor of Everton fanzine Gwladys Sings the Blues had recommended that we try the "Big Dunc Big Breakfast" (named after Duncan Ferguson) as the best, latest addition to the menu. Sadly there were none of these sausage, egg and tomato muffins on sale on our disappointing visit."
Colman's Football Food Guide
It can be quite difficult giving Everton your money. Not only is it difficult to get rid of your one pound fifty at the catering kiosks but the box office failed to answer the 'phone in January because it was "having problems" no mail order catalogue was available over the summer months and the video magazine has been discontinued. Worst, the stadium is now neglected and way to small. Here people really are begging to give Everton money. A sell-out is not good news. Its 10,000 ticket sales foregone, 5,000 programme sales less and (if Everton had bought enough) a few thousand pie and Big Dun Big Breakfast sales missed.
Take the now infamous away-kit saga. The home kit changed when the sponsors changed. No problem there. The away kit didn't, it remained the rather horrible yellow and black stripes (and what precisely is wrong with plain amber). This left Everton with a pile of away kits with "Danka" as opposed to "One2One". Then the megastore started to sell away kits with "One2One". Closer examination (by TV's "Watchdog") revealed these to be the same "Danka" kits with an "One2One" sticker stuck on.
Marks and Spencer are the most successful retailers in the UK. If you go to M&S do you expect to see last seasons clothes stickered to resemble this seasons? No. Would you be surprised if this sort of thing happened at a car boot sale? No. Are car boot salesmen at the top of the retail-success tree. No. Get this straight Everton - NOBODY MADE A PILE OF MONEY BY RIPPING PEOPLE OFF. GOOD PROFITS COME FROM GOOD PRODUCTS AND GOOD SERVICES.
Everton are ceasing to become a football club and are more and more becoming a brand?
You could have fooled me
First lets be clear "Everton" is never going to be one of those brands, like "KwikSave" or "Waitrose",that simply act as shorthand for the range of products within the brand (apart from becoming an away-strip induced shorthand for "dodgy"). If Everton acts as a brand (and it does) it is as a label that adds value. Stick it on a shirt and the shirt sells, bit like "Gucci"or "DKNY". And to form, develop and maintain a brand of this type you must protect and promote the brand. You must preserve the uniqueness of the brand.
What is unique about Everton? Why support us rather than anyone else. What is Everton's unique selling proposition.
Now how many of the top five teams play in blue? One. It may not be grown-up or rational but people support Everton for the royal blue jersey. We even have a song about it.
So why don't Everton play in it anymore?
Other clubs play in blue, a few even have local rivals playing in red, but only Everton fans take red-phobia to the extent that we do. Next time your in a toyshop look at the basic Subuteo set. In it are two teams, a blue team and a red team. Not a red team and a white team, a black and white striped team and a red and white striped team, not a green and white team and a blue team. Its as if Blue versus Red is as fundamental as Good versus Evil. This is what guarantees a sell-out every derby match. Yet on the front cover of the Evertonian is our sponsors logo. Not the revised logo for the shirts but their standard logo, with RED. RED - its like Coca Cola putting "Pepsi" on the bottom of their cans!
Another is tradition. Everton were founder members of the football leaque. Everton have spent more seasons, won more matches and scored more goals in the top-flight than any other club. Everton were winning FA cups and championships before Liverpool existed and when Manchester United were still Newton Heath. Everton has a history, a history that we sing about at matches, a history that draws us to the club.
In business terms the traditions of Everton Football Club are not a minor inconvenience. They are a MAJOR SELLING POINT. 35,000 turn up for this selling point every home game, on the internet there are people (not ex-pats) from the Chec republic, USA and Singapore following the blues every move. Any of the top 100 companies would give tens of millions for a brand like this - and Everton throwing it away!
'Phone Goodison and you will speak to one of a great bunch of people. The problem is not one of the people there. Rather it is the progressive takeover of "Nil Satis Nisi Optimum" by "Ah well that'll do". Its a fault all over football, which has shown itself unable to slough off a culture built up over a century of amateurism in the board room
The first action for Everton to take is a detailed and critical review of everything commercial that it does, how it does it and how it can do it better. It should cover everything, ticket allocations, sales , payment methods, telephone response time, purchasing, stock control, menus, cooking methods etc. etc. etc. It is important to be self-critical to inject a large element of dissatisfaction. Everton have to change a culture and cultural change is hard. Remember Nil Satis......
The good news is that all the other clubs are so dreadful that Everton need only improve to "Just about OK"to be knocking them all for six.